Apartments Best Commercial Investment For New Investors
|I was asked the other day by a new investor what my favorite type of commercial property is to invest in. After all, I have invested in a variety of property types including apartment buildings, office buildings, restaurant spaces, vacant land and other categories of commercial properties.|
I like apartment buildings best. They are easy to find, easy to analyze, everyone needs a place to live, banks love to lend on them, and they're great cash flow generators - especially now that prices and interest rates are down! In fact right now FNMA is offering 5.5% loans on apartment buildings!
For a new investor they are easy to analyze, manage, and easy to relate to. For an experienced investor they are straightforward to manage and you can set up business systems to automate and delegate the mundane day-to-day tasks of owning apartment buildings. Once one is started it is relatively simple to buy more and more apartment units and become a rich apartment building mogul.
Now is a great time to start. There are lots of great deals on apartment buildings because Buyers are sitting on the sidelines forcing sellers to be realistic about prices.
Properties are being bought on cash flow today based on current rents and occupancy - not on artificially high prices based upon hope of future appreciation or condo conversion. Buying at today's low prices gives you positive cash flow from day one. That makes is a smart investment.
My advice to my new investor was to start off with apartment buildings. I recommended that he start by investing in small to medium-sized multi-unit properties (5 to 12 units) then work his way up to larger properties as he gained experience and a strong management team.
Go forth and Prosper.
|Bob Diamond, AKA "Attorney X", is a practicing real estate attorney with experience in loan modifications, short sales and real estate litigation, real estate developer, and published author of three books on foreclosure investing. |
You may be familiar with Bob from his appearances on FOX, NBC, CNBC, NPR, the Flip That House television show on TLC, or on his real estate radio talk show.
Bob graduated from Villanova University with a degree in Finance in 1987 and from Temple University School of Law in 1993. He became a Pennsylvania licensed attorney in 1993. During his career outside of real estate and law Bob worked for Meridian Mortgage in their default and REO department, for Arthur Anderson and Coopers and Lybrand as a business consultant, and for the international law firm Cozen O'Connor as a real estate attorney.
For his own account Bob has been investing in real estate for over twenty years and has participated as the buyer, seller, or attorney in over one hundred million dollars in real estate transactions over the past twenty years. Attorney X has also invented a new way to invest using his bank-insider knowledge to teach investors how to get millions of dollars in properties with built-in bank financing, no money down, and no credit check.
Bob has been teaching real estate investing since 1999 so you have probably heard of Bob in the investor world where he is known as the ‘guru's guru.' Because of his legal expertise and experience as a real estate attorney, Bob is sought after for his advice and counsel.
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